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2025 Supreme(Ker) 2746

IN THE HIGH COURT OF KERALA AT ERNAKULAM
Anil K. Narendran, Muralee Krishna S., JJ.
M/S. Cherai Beach Resorts – Petitioner
Versus
Kerala State Electricity Board Ltd. And Ors. – Respondents
WA NO. 994 OF 2025
Decided On : 24-09-2025

Advocates Appeared:
For the Petitioner: Sri.Jose J.Mathaikal
For the Respondent: Sri.B. Pramod, Sc, Sr. Gp Smt. Nisha Bose

The court upheld the statutory requirement for the payment of assessed amounts and interest as per the Electricity Act, rejecting claims of improper assessment.

Headnote:(A) Electricity Act, 2003 - Section 127(6) - Writ jurisdiction under Article 226 - High Tension Consumer - The appellant challenged short assessment bill of Rs.36,55,527/- on grounds of overcharging and alleged unauthorized use; claims repelled as no merit found. (Paras 6-11)

(B) Statutory Interest - Liability to pay interest on delayed payment of assessed amount; court held it is statutory and cannot be interfered with. (Paras 10, 11)

Facts of the case:
The appellant, operating a resort with specific load sanctioned, contested charges imposed following inspection that revealed alleged additional load. Prior approvals were cited as defense against the claims made by KSEB.

Findings of Court:
The appellant's claims were not meritorious, and no justification for relief found.

Issues: The key question was whether the appellant was subject to additional charges based on inspections and previous approvals.

Ratio Decidendi: The court ruled that statutory provisions tied to payment of assessed amounts and interest are binding, affirmative proof of load and approval not sufficient to overturn the assessment without statutory compliance.

Result: Writ appeal dismissed.

Table of Content
1. challenge on assessment and refund demand. (Para 1 , 2)
2. contention regarding energized load and additional charges. (Para 3 , 5)
3. writ appeal dismissed; no interference granted. (Para 4 , 9)
4. court reiterates legal principles on unauthorized use. (Para 6 , 7)
5. statutory interest liability confirmed. (Para 8 , 11)

JUDGMENT :

Anil K. Narendran, J.

The appellant, who is a High Tension Consumer of electricity with Consumer No.LCN 4/4212 under the Electrical Section, Cherai of the Kerala State Electricity Board Ltd. (KSEB), which is engaged in running a resort with a sanctioned contract load of 70KVA and connected load of 136KW, filed W.P.(C)No.4107 of 2019 before this Court, invoking the writ jurisdiction under Article 226 of the Constitution of India, seeking a writ of certiorari to quash Ext.P1 site mahazar dated 23.05.2018 prepared by the Sub Engineer, Electrical Section, Cherai, Ext.P3 order dated 26.09.2018 issued by the 2nd respondent Assistant Executive Engineer, Electrical Sub Division, North Paravur, Ext.P4 invoice dated 29.09.2018 issued by the 2nd respondent Assistant Executive Engineer and Ext.P8 order dated 15.01.2019 of the 5th respondent Kerala State Electricity Appellate Authority and all other proceedings pursuant thereto; and a writ of mandamus commanding respondents 1 to 4 to refund the amounts collected from the petitioner pursuant to Ext.P3 order dated 26.09.2018 and Ext.P4 invoice dated 29.09.2018.

2. The issue raised in the writ petition centers around an inspection conducted on 23.05.2018, in the premises of the appellant-petitioner, by the Anti Power Theft Squad. Based on Ext.P1 site mahazar, the petitioner was issued with a short assessment bill (provisional demand) for Rs.36,55,527/-, on the allegation that an additional connected load of 200.006 KW was installed in the premises at the time of inspection conducted by the Anti Power Theft Squad on 23.05.2018. The petitioner submitted Ext.P2 objections dated 07.05.2018. After considering the said objections the 2nd respondent Assistant Executive Engineer issued Ext.P3 order dated 26.09.2018 and Ext.P4 invoice dated 29.09.2018 demanding a sum of Rs.36,55,527/-. The petitioner filed Ext.P7 appeal before the 5th respondent Kerala State Electricity Appellate Authority, invoking the provisions under Section 127 of the ELECTRICITY ACT , 2003. The petitioner deposited 50% of the total demand, i.e., Rs.18,27,763/-, at the time of submitting Ext.P7 appeal. The Appellate Authority passed Ext.P8 order, declining interference on the assessment made by the original authority. Based on Ext.P8 order, the 2nd respondent Assistant Executive Engineer issued Ext.P9 notice dated 31.01.2019, whereby the petitioner was required to remit the balance amount of Rs.18,27,764/- on or before 15.02.2019.

3. After considering the pleadings and materials on record and also the submissions made at the Bar, the learned Single Judge, by the judgment dated 31.01.2025, dismissed W.P.(C)No. 4107 of 2019, along with another writ petition, i.e., W.P.(C)No. 2041 of 2019 filed by another consumer. Paragraphs 5 to 9 and also the last paragraph of the judgment dated 31.01.2025 read thus;

“5. The main contention taken by the petitioner is with reference to the energization approval granted by the Electrical Inspector for 573.335KW as seen from Ext.P5. In the light of the afore, it is contended that no additional charges are payable, since the connected load was admittedly 136 KW. Reliance is also placed in the judgment of this Court in Sulabha Marketing(P) Ltd. v. Kerala State Electricity Board, Tvm and Others [ 2017 (3) KHC 563 ] to contend that the additional charges are liable to be set aside.

6. In the case at hand, the additional demand is raised pursuant to the inspection of the premises as noticed above. The question arising for consideration is as to whether the petitioner can take shelter under Ext.P5 since, with reference to Ext.P5 the sanctioned load was 573.335 KW.

7. The

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